• Larry Elliott, economics editor

  

• The Guardian, Wednesday 18 January 2012

“An escalation of the crisis would spare no one,” said Andrew Burns, manager of global macroeconomics at the World bank and the report’s author. “Developed and developing country growth rates could fall by as much or more than in 2008-09. The importance of contingency planning cannot be stressed enough. It is clear that whatever probability is attached to this downside scenario, it has increased since June last year.

“Developing countries should hope for the best and plan for the worst. If these downside risks materialised there is not much developing countries can do to prevent it. But they can prepare for it.” He added that such countries should be drawing up list of public spending priorities and stress testing their banks.

The forecasts contained in the half-yearly Global Economic Prospects report reflect the slowdown in the global economy seen in the second half of 2011, which was already evident in weakening trade flows, declining capital flows to developing countries and lower commodity prices. A similar picture is likely to be painted by the bank’s sister organisation, the International Monetary Fund, when it releases updated predictions for global growth next week.

A lot More: http://www.guardian.co.uk/business/2012/jan/17/world-bank-warns-global-recession?intcmp=239